Billionaire venture capitalist Chamath Palihapitiya says the leading digital currency Bitcoin (BTC) should be regulated as collateral.
In a new interview with All-In Podcast, Palihapitiya said that regulators and lawmakers should treat the underlying crypto-asset as collateral, even if it isn’t necessarily one.
“I am inclined to think that at this point Bitcoin probably needs to be regulated as collateral, although it is more of a commodity than it is because of scale. And the size of the market…
If you are a market player trying to trade very sophisticated derivatives of any kind, for example in the credit markets, then we have to go out there and create this stuff called ISDA [International Swaps and Derivatives Associations]…
It’s basically a kind of account that allows us to go and take risks in some of these very esoteric markets, but the underlying principle is a common set of criteria, the clearinghouse. [and] The ability to monitor risks. There is none of that stuff here, and I think that’s what people need to find out right now.
According to the billionaire, another problem in the crypto industry is the unrealistic return expectations of decentralized finance (DeFi) protocols.
“All those mysterious things… sounded too cool to believe. When you hear [about how] DeFi will give you 24%… It never made sense, but none of us questioned it.
Bitcoin is trading at $19,198 at the time of writing, down 5.56% on the day.
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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should perform their due diligence before making high-risk investments in bitcoin, cryptocurrency, or digital assets. Please note that your transfers and transactions are at your own risk and any loss you may incur is your responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, and The Daily Hodl is not an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.
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